Diversified feature

The St.George Margin Loan Diversified feature recognises the potential benefits of holding a diversified portfolio of securities by providing investors with a wider range of acceptable securities.

For investors who hold three or more qualifying securities, the Diversified feature provides access to an extended range of equities, (also known as “bonus” securities), where an LVR would not normally be applied. Once a portfolio is recognised as Diversified, these bonus securities become acceptable security, and contribute to additional borrowing limit.

Diversified Feature - Getting Started

Existing Customers

There is no need to specifically apply to access this feature. Once your loan meets our diversification criteria you will automatically qualify for access to the feature and the extended ASL.

This feature provides additional gearing choice to clients who hold a diversified portfolio. For investors with three or more qualifying securities, the Diversified Loan feature provides access to bonus acceptable securities.

This feature provides additional gearing choice to clients who hold a diversified portfolio. For investors with three or more qualifying securities, the Diversified Loan feature provides access to bonus acceptable securities.

The amount you can borrow is determined by your credit limit and the value and composition of the shares, managed funds or cash you provide as security.

If your portfolio qualifies for the Diversified loan feature you can receive an additional borrowing limit based on the value of bonus acceptable securities. Bonus acceptable securities are currently assigned an LVR of 40%. For the purpose of calculating additional borrowing limit the value of bonus acceptable securities is subject to a cap of 20% of the market value of the qualifying securities.

Here’s how it works Consider an investor who holds the following portfolio. It qualifies for the diversified feature, as the investor holds three securities held on the standard St.George ASL. You can see the additional gearing that the investor can then access from the bonus securities held.

The weighting of securities in your portfolio is not specifically considered; however a concentrated portfolio will not be eligible for the Diversified Loan feature. A portfolio is concentrated if you have more than 50% of your total holdings in a single stock.

Concentration in any single stock can increase the risk of a margin call in the event of a significant decrease in the value of that stock.

Conditions, fees and charges apply. These may change or we may introduce new ones in the future. Full details are available on request. Lending criteria apply to approval of credit products. This information does not take your personal objectives, circumstances or needs into account. Consider its appropriateness to these factors before acting on it. Read the disclosure documents for your selected product or service, including the Terms and Conditions or Product Disclosure Statement, before deciding. Unless otherwise specified, the products and services described on this website are available only in Australia from Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714.